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According to wealth management firm Killik & Co, keeping a child in a state school until the age of eight would cut £97,000 – more than a third – off the total cost of a private education.

Svenja Keller, head of wealth planning at Killik & Co, said: "We are now living in an economic environment where the cost of childcare is influencing parents’ decision on whether or not they choose to have more children.

"This is a shocking position to be in, given that this decision comes as parents are still underestimating the cost of raising a young child by 34%.

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The cost of childcare is putting parents with young children off from having others (Image: Getty Images)

"This situation could be easily prevented as parents could make significant savings towards their goals through financial planning, regular savings and by making use of financial incentives."

In their report The Real Cost of Childcare Report the firm – which has been advising clients on how to save, plan and invest for almost 30 years – showed that despite the high cost of childcare, a vast majority of these couples are not using two recently launched Government schemes which could see them save £8,384 including 30 hours per week of free childcare in England – raised from 15 hours in September 2017 – and the Tax-Free Childcare Scheme introduced across the UK in April 2017.

The report shows that only 31% of parents are using the initial 15 hours free childcare while not a single couple has started using the additional 15 hours free childcare introduced in September which is worth an additional £3,192 in savings.

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In addition, a mere one in five couples (21%) actually intend to use the free childcare services in the future.

Ms Keller said there was a worrying lack of awareness and uptake despite widespread publicity about the new Government childcare schemes.

She said that given that more than seven in 10 parents surveyed hope that at least one of their children will attend university and one in eight is planning on private education for their children, parents should seriously consider the schemes as the perfect incentive to save and invest on a regular basis.

It could cost parents up to £6,500 a year on childcare but there are ways to ensure having children does not cost the earth (Image: Getty Images)

She added: "As we show in this report, parents could make over £8,000 worth of savings a year on childcare by using Government help.

"We believe in planning ahead – of setting aside small amounts and doing so regularly. That way, parents benefit from the power of compounding on their savings and investments.

"Start small, start early and seek advice - this is a mantra all parents should keep in mind.”

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Not only is the cost of childcare putting parents off from having additional children, but they are relying heavily on family support with their existing children.

More than 71% of respondents depend on extended family as the main source of childcare, with 65% of help specifically from the child’s grandparents.

Children in Cornwall will suffer under the new funding formula say headteachers (Image: Getty Images)

Flexible working

Our survey reveals 40% of parents have cut back their working hours in the last five years due to the cost of childcare. More than double the number of women (49%) than men (22%) have reduced their working hours in the last five years due to the cost of childcare.

When asked what parents would do with any potential savings from the new childcare schemes, respondents gave a variety of answers: 48% would add it to an existing savings account, 31% would put the money towards their mortgage, 18% planned to spend more on childcare, 10% were keen to invest, 9% would add to their pension and 4.5% would pay off debt.